•CS Njuguna Ndung'u has urged countries to include food security, climate change mitigation and adaptation framework in their respective economic agenda.
•He has further reiterated the need for governments across the continent to focus on protecting private investments.
Image: EZEKIEL AMING'A
Kenya's National Treasury CS Njuguna Ndung'u has challenged economies in Africa to explore alternative ways to recover from the existing multiple shocks.
He urged countries to include food security, climate change mitigation and adaptation framework in their economic agenda.
Ndungu spoke during the African Economies Research Conference (AERC) 57th Biannual Research Workshop, in Nairobi, on Tuesday.
The CS said there is need for governments across the continent to focus on protecting private investments, recovering the health infrastructure, education and nutrition as part of recovery from the multiple shocks.
“We can accelerate African economic recovery journey through collaboration and cooperation towards research that focuses on how to protect private investors," said Ndung'u.
Economic researchers should also focus on domestic resource mobilisation and digital resolution in the African set-up.
In the last two decades, African economies have weathered multiple negative global shocks and remained resilient even when these shocks hit hard the core of key macroeconomic indicators.
However, the Covid-19 pandemic, coupled with the war in Ukraine and climate-related shocks have caused permanent damage that could take years to mend.
“We saw the Covid-19 pandemic that hit the entire world, but Africa was affected differently from the rest of the world, and today the most relevant issue is the war in Ukraine. Wee need to figure out solutions in our own way on how to tackle these many shocks,” said professor Ernest Aryeetey, chairman, AERC board.
AERC acting executive director and director of training, Théophile Azomahou, noted that the economic fundamentals of most African economies have not changed much in the last three decades.
He said the recovery from the shock that is taking shape runs the risk of being uneven, widening the differences within Africa itself and between Africa, and the rest of the world.
"The current debate today focuses on how this can be avoided. Beyond the support already deployed, there is an urgent need to find lasting solutions to finance Africa’s economies. And, together, we need to chart a path to a more resilient recovery,”Azomahou said.
According to the official, investment, domestic savings, government revenue and economic structure have remained unchanged, while urbanisation, population and unemployment are rising.
The outcome is declining economic activity, rising poverty and inequality, where the Covid-19 has wiped the efforts in the last two decades or so on growth, fighting poverty and inequality, Azomahou added.
With low adaptation and implementation of dynamic structural transformation strategies emanating from lower capital accumulation, some of the development initiatives that could have spurred Africa out of poverty trap have been elusive.
The conference brought together high-level policymakers, researchers, media, economists, academics, and non-state actors.